Classwork Series and Exercises (Social Studies – JSS2): Keeping money in the banks

Social Studies, JSS 2,Week 4

Topic: Keeping money in the bank

Content:

1. Meaning of bank
2. Things people keep in the bank
3. Types of banks
4. Meaning of commercial banks
5. Characteristics of commercial bank
6. Meaning of central bank
7. Characteristics of central bank
8. Advantages of keeping money in the bank

Meaning of bank

A bank is a place where money and other valuables are kept.

Also, a bank is an establishment authorised by a government to accept deposits, pay interest, clear checks, make loans, acts as an intermediary in financial transaction, and provide other financial services to its customers

Things people keep in the bank

Things people keep in the bank are the following

• Money
• Valuables; such as gold, diamond, jewelry, important document

Types of bank

Types of bank in Nigeria are:

• Commercial banks
• Central banks
• Merchant banks
• Development banks
• Mortgage banks. The major ones that will be discussed at this level is

The Commercial banks: the commercial bank is the bank that offers services to the general public and to companies. It accept deposits and other valuables for safe keeping. Examples of commercial banks are Zenith Bank PLC, Wema bank Plc etc.

Characteristics of commercial bank

• They accept money and valuables for safe keeping
• They are members of the money market
• It’s motive is for making profit

The Central bank:

The central bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1958.

It issues the Nigeria maintains foreign currency reserves and is charged with maintaining monetary stability. It is also the lender to last resort for Nigerian banks. It was established by law in 1958

Characteristics of the Central Bank of Nigeria

• The central bank is the lender to other banks
• It’s aim is not to make profit
• It is owned by the government
• It is the highest financial institutions
• It regulates and oversee commercial banks

Advantages of keeping money in bank

• It helps to safe keep your money
• It helps to grow your money because it yields interest
• It gives a person rest of mind cause it is the safest place to save money
• Opportunity for other services like getting of loan, use of overdraft etc.

Test and Exercise

1. The following are advantages of keeping money in bank except (a) it is safe (b) it yields interest (c) the money and valuables can be stolen (d) opportunity to get loan
2. One of the characteristics of central bank is (a) it’s aim is to make profit (b) it accept deposits (c) example is Zenith Bank Plc (d) it’s owned by the government
3. A place where money and other valuables are kept is (a) bank (b) market (c) toilet (d) bed room
4. The major aim of the commercial banks is (a) to serve as lender to central bank (b) to make profit (c) to serve as government’s bank (d) to regulate other banks
5. The following are what people keep in the bank except (a) money (b) gold (c) clothes (d) document

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